17: F.4. Analytic Tools-Sensitivity and Simulation Analysis

Question 1

Which of the following can be used to find solutions to mathematical problems that involve changes to multiple input variables at the same time?

A. Sensitivity analysis.
B. Correlation analysis.
C. Simulation analysis.
D. Data visualization.

Answer 1

The correct answer is C

Sensitivity analysis is used for testing one variable and how it is sensitive and affects the results

Correlation analysis is used when you want to test two variables and how strongly they depend on each other

Data visualization is a way of presenting data visually, to understand the patterns

Question 2

What is the difference between sensitivity analysis and Monte Carlo simulation

Answer 2

1- Sensitivity analysis: Change one variable at a time and see how this variable affects the output

2- Monte Carlo: change many inputs at the same time using random variables, runs hundreds or thousands of times